Consumer Credit Rises in April
Total consumer credit increased by more than expected in April, according to the Federal Reserve’s Consumer Credit report…(Federal Reserve)
- Total consumer credit rose 10.1% ($38.1B) to a record $4.57 trillion in April.
- This was slightly above economist expectations of $35 billion.
NOTE: The 10.1% increase was lower than the revised 12.7% gain the prior month.
Revolving credit was up double-digits in April, but it was at a slower pace than the prior month…
- Revolving credit was up 19.6% rate in April to a record $1.1 trillion, down from the 29% gain the prior month.
- Nonrevolving credit was up 7.1% rate to a record $3.5 trillion, down slightly from the 7.6% gain the prior month.
As prices continue to outpace wages the only way consumers can keep pace is by tapping savings or credit. With savings rates falling, paying attention to credit usage will be a much better indicator of a potential slowdown of the economy.
